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History matters for the export decision and the volume exported: Firm-level evidence from French agri-food firms AgEcon
Latouche, Karine; Shonkwiler, John Scott; Chevassus-Lozza, Emmanuelle.
As a result of the rapid growth of microeconometric studies of exporting firms, we know quite a lot about the hysteresis occurring in the current decision of firms to export. Firms entering a foreign market the previous year are more likely to export the current year. This fact is traditionally interpreted as a consequence of sunk export costs at entry to the international market. These costs are for instance the knowledge of foreign markets, the search for new distribution networks, or the compliance with border crossing standards specific to a given market. The specificity of the destination market appears as being of huge importance for the firms. Papers in this field propose to test for the existence of sunk-cost hysteresis by analysing entry and exit...
Tipo: Conference Paper or Presentation Palavras-chave: Dynamic tobit model; French agri-food firms; Exports; Destination markets; Agribusiness; International Relations/Trade.
Ano: 2010 URL: http://purl.umn.edu/61481
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